Can Anyone Steer This Economy - Essay Example

Our newly elected democrats made many promises during their campaigns.  Boosting the minimum wage was one of the encouraging promises made, but in all reality boosting the minimum wage will not do so much for the working force, especially in the face of inflation.  Many empty promises have been made by many politicians within many campaigns in which the last one was no exception.  While campaigning, Nancy Pelosi promised to get the budget deficit under control.  Getting the budget deficit under control was another one of those empty promises that sounded great, but such an increase will not do much in the way of business investment and economic growth (Mandel).

The rise in the family home vs. a decline in income

The question at hand is the condition of the family if the value of their home rises while their wages decrease (Mandel).  Unfortunately, the statistics to answer these questions are not available, but there are different scenarios that can give a common-sense solution to the question at hand. 

First of all, bonds have hit an acceptable low, which is good news for the home buyer (Mandel).  If a homeowner encounters a decrease in their income but their home value increases, the chance of refinancing their home to consolidate their debts at an affordable rate is better with lower interest rates.  This can put a family in a stable situation while the money lasts, but with the fluctuating mortgage rates, they may encounter a situation in which refinancing is not an option.  On the other hand, if a homeowner’s home does not raise in value and their income increases, they may be able to work out a longer-term solution rather than refinancing their home.  Those with higher incomes are able to contribute more of their money to savings and retirement funds than those with lower wages.  That way they are able to have funds available in case of a rainy day.

What happens if a U.S. company opens an R&D facility abroad?

Michael Mandel states in his article that “the broad-based drop in incomes is being driven more by the rise of China and India.”  He also states that “Globalization has overwhelmed Washington’s ability to control the economy.”  It seems, though, that both the Democrats and the Republicans are in some sort of agreement on increasing R&D funding.  The problem with this agreement is that it seems that the domestic growth that was once assumed to be generated from outsourced research and development is over (Mandel).   

The support for R&D is for domestic R&D to give the U.S. a competitive edge.  If a U.S. Company were to open an R&D facility in China or India, U.S. workers would not benefit from this move.  China and India are very attractive to companies seeking out prime locations for research and development.  We’re talking about companies willing to spend up to $400 million to have research and development conducted in these countries, but resources are scarce, which means these companies may not be getting their dollar’s worth. 

The only way in which U.S. workers would benefit is if the facility were opened on U.S. soil, but it seems that research and development in the United States is waning due to investments in other areas, which may not have an effect on U.S. workers either way, yet if a facility were opened, then jobs would be made available.  If the facility is a failure, then jobs would be lost.

Economy Improvement Proposal

If I were elected to Congress, I would first of all propose and put into action a system in which we could measure the successes and the failures of our country.  We do not know the statistics of whether or not families truly benefit or not from rising home values and falling wages.  We do not know the true effects of what would happen if sustainable R&D facilities within the United States would truly benefit U.S. workers. 

I would find a way to make health care workable for people.  As stated before, health care is viewed as a handicap on the economy, but perhaps the fact that healthcare makes it possible for people to work better for longer periods of time is having a significant impact on the economy.  Yet we do need a better healthcare system.  I would bring to the attention of my fellow congressmen and congresswomen that better health care is in our best interest for the sake of the workforce that makes many of the amenities we are used to possible.

Another thing is that I would not make promises that sounded better than they are. There are too many details left out of these promises, which makes them empty.  They say they will do something to improve the budget deficit, but they make that improvement seem bigger than it is.  Yes, improving the deficit is on the minds of many politicians.  It has been a goal for many political terms and, although improvement has found the light within several administrations, the truth needs to be relayed to Americans and politicians need to be realistic to their selves as well.